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Is depreciation a controllable cost?
No. Depreciation would be considered an uncontrollable cost because it is fixed
What is lost depreciation tax shield?
Lost depreciation tax means that loss of that tax amount which could be saved if there would be depreciation expenses in profit and loss account which will reduce the profit and hence the tax as well.
Is depreciation included as a cash flow in capital budgeting?
No depreciation is not included as depreciation is allocation of part of assets cost to income statement while in capital budgeting, full cost of asset is already included so if depreciation will also be included then there would be double counting of same asset.
Which method of depreciation would you use if you were to receive a bonus which is based on net profit?
which method of depreciation to use when bonus is received that is based on net profit
How does an increased depreciation expense affect tax-related cash flows?
The depreciation deduction increases the amount of after tax cash (working capital) available to the business. The additional cash is equal to the amount of tax that would otherwise be payable on the depreciation claimed. This is because depreciation is an "unfunded" expense, but is really a tax deferral which is subject to recapture in the future.
Is depreciation a controllable cost?
No. Depreciation would be considered an uncontrollable cost because it is fixed
When would a company consider using accelerated depreciation?
There are many reasons that a company may consider using accelerated depreciation. The main reason being that by using accelerated depreciation, this would decrease their tax payments.
Can you have debit posting for accumulating depreciation?
Dear sir I want to ask some question like i wnat to do ACCA in UK but i dont know the criteria and procedure of that . some one told me ACCA is to much difficult field it would be difficult for you to complet it.
What is the depreciation on a used Mitsubishi car?
The depreciation on a used Mitsubishi car is different for every car. There is no given set limit on depreciation for a used Mitsubishi car. Dealers would know more.
What is lost depreciation tax shield?
Lost depreciation tax means that loss of that tax amount which could be saved if there would be depreciation expenses in profit and loss account which will reduce the profit and hence the tax as well.
What would a permanent accounts include accumulated depreciation?
yes
Is depreciation included as a cash flow in capital budgeting?
No depreciation is not included as depreciation is allocation of part of assets cost to income statement while in capital budgeting, full cost of asset is already included so if depreciation will also be included then there would be double counting of same asset.
Which method of depreciation would you use if you were to receive a bonus which is based on net profit?
which method of depreciation to use when bonus is received that is based on net profit
Can depreciation on a Fixed Asset be carried as a contra-asset on its own line on the balance sheet or does it have to be deducted from the Fixed Asset?
Depreciation of a Fixed Asset is always carried on the Balance Sheet in the Accumulated Depreciation Account (contra-asset). It is never deducted from the Fixed Asset.One reason for the Accumulated Depreciation account is that eventually, individual assets will be fully depreciated and their net values will be zero. If the depreciation were deducted from the asset, it would "fall off" the balance sheet. The accumulated depreciation account allows the assets to remain at book value in the asset account to maintain their visual presence on the books.The depreciation entry debits depreciation expense and credits accumulated depreciation.
Can grounding your home eliminate static electricity?
It would be very difficult unless it was made out of all metal. Carry a quarter with you and touch it to metal to discharge static. Isn't that shocking?
What types of questions would be on a physics test?
Physics is a difficult type of science, which studies matter and the motion through space and time. Types of questions on the physics test would be about energy and force.
Is depreciation is an asset liability or equity?
no Depreciation Expense is an expense on your Statement of Comprehensive Income (Profit and Loss Account) The depreciation expense in the year would then reduce the value of the asset to which the depreciation relates. If you have any further questions on this topic, please do not hesitate to contact me at info@hodgsons.co.uk -------------------------------------------- With Regards to the Accounting Equation. Equity (NAV)= Assets- Liabilities Depreciation would be considered negative equity (as are all expenses) as they represent a decrease in the net asset value- or NAV- (not through transaction with the entities owner)
